May 8, 2025/Cordros Report

FIRSTHOLDCO released its Q1-25 results reporting a 3.3% y/y growth in gross earnings, fueled by growth in core income (+40.2% y/y) which offset the decline in non-core income (-60.0% y/y). Consequently, profitability came in lower due to the lower non-funded income with PBT and PAT dipping by 20.4% and 17.9%, respectively. 

Notably, we reduced our 2025E EPS estimate marginally to NGN18.33 (previously: NGN18.85), which led to a reduction of our year-end target price by 0.5% to NGN34.97/s (previously: NGN35.16/s). We upgraded our rating to a “BUY” and estimated a gross DPS of NGN1.00 in 2025E, which translates to a dividend yield of 4.0% based on the last closing price of NGN25.00/s (7 May). Our model suggests the stock is trading at a 2025E P/E and P/B estimates of 1.9x and 0.4x, respectively.